DIN Reactivation

February 20, 2025 by Team Instabizfilings

A Director Identification Number (DIN) is a unique identification number assigned to individuals who are appointed as directors in an Indian company. This number is issued by the Ministry of Corporate Affairs (MCA) and remains valid throughout the director’s tenure in the company. However, there are instances when a DIN may become deactivated, preventing a director from performing their duties.

In such cases, the DIN can be reactivated by following a specific procedure outlined by the MCA.

Reasons for Deactivation of DIN

Before delving into the reactivation process, it’s essential to understand why a DIN might get deactivated:

Non-compliance with KYC Filing (DIR-3 KYC): If a director fails to file the DIR-3 KYC form on the MCA portal, the DIN will be deactivated after the prescribed due date. This is a common reason for deactivation of the DIN.
Failure to File Annual Returns: Every company must submit financial statements together with annual returns to relevant authorities. When a company does not fulfill its statutory filing obligations the director risks DIN deactivation as one consequence of the company's non-compliance.
Non-payment of Fees: Non-payment of fees associated with filings or penalties imposed by the ROC can also lead to the deactivation of the DIN.
Disqualification of Directors: Under certain conditions, a director can be disqualified by the Ministry of Corporate Affairs (MCA) for violations like financial mismanagement, fraud, or other illegal activities. In such cases, their DIN becomes deactivated.
Failure to Update the Details: Non-updated KYC details by directors can lead to deactivation of their DIN.

How to Reactivate a DIN Number

A company that has closed its operations can reactivate its DIN by fulfilling specific requirements followed by necessary steps. A company starts reactivation by submitting designated forms to the Registrar of Companies (RoC) while following every necessary compliance requirement. Here's how to go about it:

Step-by-Step Process for Reactivating DIN

Check the Status of the DIN

The first step in reactivating a DIN is to check the current status of the DIN on the MCA portal:

Go to the official MCA website (www.mca.gov.in).
Log in using the director’s credentials (if applicable).
Navigate to the DIN Status option to check whether the DIN is active, deactivated, or disqualified.

Identify the Reason for Deactivation

The presence of multiple activation causes demands that you discern the actual reason for DIN inactivation before taking proper steps for reactivation. Common reasons are:

Non-filing of DIR-3 KYC.
Non-compliance with annual filing requirements.
Disqualification of the director by the MCA.

Complete DIR-3 KYC Filing (If KYC is Pending)

If the DIN is deactivated due to non-filing of DIR-3 KYC, the first action is to file the DIR-3 KYC form. Here’s how to do it:

Visit the MCA website.
Log in using the director’s credentials.
Fill out the DIR-3 KYC form with all required personal details and submit it along with the necessary documents like PAN card, Aadhar card, and proof of address.
Once the form is submitted, you will receive an acknowledgment from the MCA, confirming that the KYC has been completed.

File Pending Documents (If Required)

Your priority should be the completion of all pending reports after a DIN deactivation which stemmed from annual return non-filing or compliance errors. This can include:

Filing of annual return (Form MGT-7) and financial statements (Form AOC-4).
The payment of all outstanding penalties together with non-compliance fees is necessary.

Submit Requisite Forms for Reactivation

Once all compliance requirements are met, you can submit the following forms to the Registrar of Companies (RoC):

Form DIR-12: This form is used for notifying the RoC about the appointment of directors and reactivation of their DIN.
Form INC-22: If required, this form is used to notify the RoC about the change in the registered office, which might also be necessary if the company has updated any of its statutory details.

Pay Any Penalties or Fees : If your DIN was deactivated due to non-payment of fees or penalties, ensure that the outstanding payments are cleared. After payment, the DIN can be reactivated.
Reactivation Confirmation : Once the forms are submitted and all compliance issues are addressed, the Registrar of Companies (RoC) will review the application. If everything is in order, the RoC will reactivate the DIN.

The director will receive a confirmation notice from the RoC, and the DIN status will be updated to Active on the MCA portal.

Important Considerations for Reactivating DIN

Timeliness: The earlier the DIR-3 KYC or any required filing is completed, the sooner the DIN can be reactivated.
Late Fees: If the DIR-3 KYC filing is delayed, the director may have to pay a late fee as prescribed by the MCA.
Compliance is Key: To prevent future deactivation, directors must ensure that they remain compliant with MCA requirements, including annual returns, financial statements, and KYC filings.

Consequences of Not Reactivating a DIN

Inability to Act as a Director: If the DIN remains deactivated, the individual cannot act as a director of any company. This includes the inability to sign any documents on behalf of the company or make key decisions.
Company Impact: If a director’s DIN is deactivated, the company may face issues with appointments, reappointments, or official filings. This can affect the company’s overall functioning.
Legal Implications: Continued non-compliance can lead to legal consequences for both the director and the company.

Conclusion

The restoration process for a deactivated DIN remains simple only if the director solves the reasons behind inactivation. The central aspect when dealing with KYC non-compliance and annual filing defaults involves timely completion of necessary requirements to activate your DIN. Directors can continue their work for the company by using the MCA portal correctly to activate their DIN.

Directors must fulfill MCA regulations and timely file necessary forms while maintaining current official KYC details in order to prevent future DIN deactivation. Professional assistance such as consulting with company secretaries and legal advisors should be pursued when facing difficulties during the reactivation process to achieve smooth reactivation.

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